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This chapter bridges the gap between two distinct approaches to the concept of psychic distance – measuring it in terms of people’s perceptions of distance or in terms of exogenous national-level differences. The two approaches are reconciled in a “refined and integrative” definition of the concept, which is tested empirically using a mediating model.

Structural equation modeling is used on a bilateral sample of 25 countries to test whether perceptions of psychic distance mediate the relationships between national-level differences and bilateral trade and investment.

By testing for alternative direct paths, the chapter confirms that for the main forms of national-level differences, culture, socioeconomic development, language, and religion, psychic distance fully mediates their relationships with both trade flows and investment patterns. However, for geographic distance, while the relationship is fully mediated for investment, it is only partially mediated for exports. Two asymmetric “distance-bridging” factors are also found to be significant antecedents of psychic distance.

This chapter is the first to empirically demonstrate the mediating relationship between exogenous national-level differences and perceptions of psychic distance, and thus, provides new insights into the debate over which measurement approach is more appropriate. Perceptions of psychic distance, even if measured by expert panels rather than the actual decision-makers, fully capture the impact of national-level differences on trade and FDI flows; however, if such measures of perceptions are not available, a simple selection of four national-level differences will still capture 80% of the same effect.

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity).

The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEs’ performance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEs’ performance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance.

This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.

The purpose of this paper is to examine the impact of mediated power asymmetry on relational risk perception and modes of governance mechanism (intention‐based trust and unilateral control).

Survey research was conducted to collect data from 112 new product development (NPD) relationships and structural equation modeling was conducted to test the hypotheses.

The results suggest that benefiting from mediated power asymmetries by a firm is positively related to the relational risk perceived by its partner firm. This perception influences intention‐based trust to partner firm negatively and exercising of unilateral control positively. It was also found that the relationship between mediated power asymmetry and governance modes is mediated by relational risk perception.

This paper enhances the understanding of NPD relationships by examining the key mechanisms through which governance decision modes are influenced. In particular, the paper shows how mediated power asymmetries through affecting relational risk perception influence two governance modes including intention‐based trust and unilateral control.

The purpose of the study was to confirm the mediating effect of perceived quality in the relationship between two extrinsic cues (brand name and country of origin)and perceived value previously tested by Teas and Agarwal (2000) using more rigorous statistical techniques - regression analysis and structural equation modelling (SEM) - in a sports consumption context. Data were collected from 194 members of the Korea University Ski Team Association. Based on the results, the partially mediated model was selected as the best fitting model. From a marketing perspective, ski marketers need to understand that the two extrinsic cues had direct and indirect influences through perceived quality on perceived value of the ski product.

The purpose of this paper is to develop a new model, namely service quality measurement in higher education in India (SQM‐HEI) for the measurement of service quality in higher educational institutions.

Data were collected by means of a structured questionnaire comprising six sections. Section A consists of ten questions pertaining to teaching methodology (TM). Sections B consists of five questions pertaining to environmental change in study factor (ECSF). Section C consists of eight questions relating to disciplinary measures taken by the institutions. Section D consists of five questions related to the placement‐related activities and in part E two questions provide an overall rating of the service quality, satisfaction level. Finally, in part F 13 questions pertaining to student respondent's demographic profile information were given. All the items in Sections A‐E were presented as statements on the questionnaire, with the same rating scale used throughout, and measured on a seven‐point, Likert‐type. In addition to the main scale addressing individual items, respondents were asked in Section E to provide an overall rating of the service quality, satisfaction level. For conducting an empirical study, data were collected from final‐year students of higher educational institutions across Tamil Nadu. The sampling procedure used for the study was stratified random sampling. The stratification has been done based on the region Chennai, Coimbatore, Madurai, Tiruchirappalli, and nature of institution, government university, government college, aided college, private university and self‐financing college. While selecting the institutions from each category, non‐probabilistic convenience and judgmental sampling technique were used. However, within such institutions, the respondents were selected by stratified random sampling.

The SQM‐HEI‐mediated model argued that the placement is the better interactions of the quality of education in India. The model reveals that the quality of education is based on the best faculty (TM), the excellent physical resources (ECSF), a wide range of disciplines (DA) which paved the diverse student body and to improve the employability of the graduates (placement as mediating factor) coming out of the higher educational institutions in India. The above model proves that the placement is the mediated factor for various dimensions of quality education. SQM‐HEI model would help in identify three service areas to be focused in the higher educational institutions for improving the quality of . These three dimensions of quality correlated between the sub‐dimension variables and it is very necessary for improving the quality of higher education in India. The educationist says that, education is a change of behavior of students. Hence, the higher educational institutions should come forward to adapt the sub‐dimensions of quality variables to enhance the outcome of education.

The model described in this paper will assist academic institutions when mapping the level of service quality and thereby enhance the same.

The purpose of this paper is to establish the mediating role of collective action in the relationship between financial intermediation and financial inclusion of the poor in rural Uganda.

The paper uses structural equation modeling (SEM) through bootstrap approach constructed using analysis of moment structures to test for the mediating role of collective action in the relationship between financial intermediation and financial inclusion of the poor in rural Uganda. Besides, the paper adopts Baron and Kenny’s (1986) approach to establish whether conditions for mediation by collective action exist.

The results revealed that collective action significantly mediates the relationship between financial intermediation and financial inclusion of the poor in rural Uganda. The findings further indicated that the mediated model had better model fit indices than the non-mediated model under SEM bootstrap. Furthermore, the results showed that both collective action and financial intermediation have significant and direct impacts on financial inclusion of the poor in rural Uganda. Therefore, the findings suggest that the presence of collective action boost financial intermediation for improved financial inclusion of the poor in rural Uganda.

The study used quantitative data collected through cross-sectional research design. Further studies through the use of interviews could be adopted in future. Methodologically, the study adopted use of SEM bootstrap approach to establish the mediating effect of collective action. However, it ignored the Sobel’s test and MedGraph methods. Future studies could adopt the use of alternative methods of Sobel’s test and MedGraph. Additionally, the study focused only on semi-formal financial institutions. Hence, further studies may consider the use of data collected from formal and informal institutions.

Policy makers and managers of financial institutions should consider the role of collective action in promoting economic development, especially in developing countries. They should create structures and design financial services and products that promote collective action among the poor in rural Uganda.

Although several scholars have articulated financial inclusion based on both the supply and demand side factors, this is the first study to test the mediating role of collective action in the relationship between financial intermediation and financial inclusion of the poor in rural Uganda using SEM bootstrap approach. Theoretically, the study combines the role of collective action with financial intermediation to promote financial inclusion. Financial intermediation theory ignores the role played by collective action in the intermediation process between the surplus and deficit units.

This study has a twofold goal. First, we examined perceptions of organizational politics as viewed by the academic staff in a public university. Second, we tested the potential mediating effect of perceptions of politics on the relationship between social capital and work outcomes. We surveyed 142 junior and senior faculty members of a large public Israeli university and tested several competing models. Major results, based on Structural Equations Model (SEM) analysis, indicate that the mediating model has several advantages over the direct effect model. In addition, a revised, mixed model provided additional advantages. The models are compared and discussed. Finally, implications of the findings and recommendations for future studies on internal politics and social capital in academia and beyond are suggested.

This paper aims to examine the mediating role of attitudinal loyalty in the relationship between satisfaction and customer behavioral intentions such as willingness to pay more and internal and external complaining responses. It also seeks to examine the nonlinear effects in the relationship between satisfaction, attitudinal loyalty and behavioral intentions.

The paper adopted the structural equation modeling approach to test the hypotheses (sample size 202). It used Marsh et al.'s unconstrained method to test latent quadratic effects in the conceptualized relationships.

The results support the fully mediating role of attitudinal loyalty in the relationship between satisfaction and behavioral intentions. The paper also finds partial support for nonlinear effects in the relationship. Results support nonlinearity, and in particular diminishing sensitivity, in the link from attitudinal loyalty to willingness to pay more.

The paper adds to the existing literature by detangling the complex relationships between satisfaction, attitudinal loyalty and behavioral intentions such as willingness to pay more and external and internal complaining responses. In particular, this is the first study to simultaneously examine the nonlinear effects of attitudinal loyalty on multiple behavioral intentions constructs. This study also establishes the superiority of a fully mediated model, in which satisfaction affects behavioral intentions through attitudinal loyalty, over a partially mediated model.

This study employs situated learning theory to elucidate the mechanisms of interorganizational collaboration by analyzing the relationships among absorptive capacity, institutional compensation, task cognitive integration and interorganizational collaboration in BIM-enabled construction projects.

An online questionnaire survey was conducted with managers and professionals involved in building information modeling (BIM-) enabled construction projects, and 220 valid responses were received. Data were analyzed by means of the linear regression models and bootstrap method.

The results show that (1) absorptive capacity, institutional compensation and task cognitive integration have a positive impact on interorganizational collaboration; (2) institutional compensation partially mediates the effect of absorptive capacity on interorganizational collaboration; (3) task cognitive integration fully mediates the effect of absorptive capacity on interorganizational collaboration; (4) institutional compensation and task cognitive integration serially and fully mediate the relationship between absorptive capacity and interorganizational collaboration and (5) the serial mediating model has a greater indirect effect than the other two models considered in this study.

This study contributes to the body of knowledge by demonstrating the way to break through the three types of organizational boundaries (i.e. syntactic, semantic and pragmatic organizational boundaries) and provide an internal collaborative mechanism from the perspective of situated learning theory. This study presents the critical effects of absorptive capacity, institutional compensation and task cognitive integration on interorganizational collaboration, selects the enhanced mediating model for explaining the effects of absorptive capacity on interorganizational collaboration and enables managers to update the traditional collaborative model in BIM-enabled construction projects.

The purpose of this paper is to examine the mediating roles of cognitive and affective trusts between the transformational leadership (TL) and employee outcomes (task performance (TP), organizational commitment (OC), and employee turnover intention (ET)).

This study samples 384 bank employees and records their self-reported responses for closed-ended items in the survey. SmartPLS 3.0 is used for the analysis.

The results indicate that affective trust (AT) and cognitive trust (CT) mediate between the transformation leadership and OC positively. Moreover, AT and CT both mediate negatively between TL and TP. Finally, both dimensions of trust as second-order constructs mediate positively between the TL and ET. The results related to the ET and TP are highly intriguing and in conflict with the simple and non-contextual statement of the social exchange theory.

TL, AT, and CT have greater importance for the managers to increase the positive work-related outcomes of employees. Moreover, the results related to TP and ETs are highly applicable to the managers and business.

The originality of the study lies in use of the SmartPLS 3.0 for analysis as it offers unique and precise measures of the measurement model like HTMT ratio and does not rely on the co-variance. Moreover, mediating roles of AT and CT have never been tested before in the given settings. Finally, results defy the simple statements of the theory and call for the context-based theorized empirical studies. In doing so, it calls for the post-modernist stage (case-by-case contextual treatment of theory) of HR and management literature.